Abu Dhabi will help Dubai in exchange for a limitation of sovereignty
November 28, 2009 – 11:00 pm
Bankruptcy Dubai is not threatened, but out of the crisis he will need a couple of years, it will be forced to cede part of its economic sovereignty of the emirate of Abu Dhabi, said the Saudi financial analyst Abdullah Al-Barrak.
Emirate of Dubai announced restructuring plan for the Dubai government-owned company Dubai World, and appealed to its creditors with a request to freeze or defer payment of debts, at least until the end of May next year.
“Dubai is experiencing a financial crisis, but talk of bankruptcy Dubai is not” – said the Saudi newspaper Al-iqtisadi “Abdallah Al-Barrak, head of Saudi financial investment company” Sarah “.
Message from Dubai to creditors with a request to defer debt payments on loans, “of course, alarmed markets, especially bond markets, but Dubai – an unusual town,” said Abdullah al-Barrak.
“It – the leading logistics center companies worldwide, and this is a critical factor in the investment policies, and these companies is difficult to abandon their positions in the emirate,” – he said.
“The crisis will slow too hasty development of Dubai as compared to other cities in the region” – says the analyst.
However, in his opinion, “many countries are willing to lend to Dubai. ” “This is the emirate does not need to worry. Factors that ensure regular growth remain “, – said Abdullah al-Barrak.
Experts major Saudi economic newspaper believe that Dubai may have to forgo part of their holdings in favor of Emirate of Abu Dhabi, but within a federal state Dubai will continue the policy of development, will meet its financial obligations in the coming years and “will overcome the crisis in two years”.
On information publications, Dubai’s total debt amounts to $80 billion, 70 billion of these are debts of companies Dubai public sector, including 59 billion dollars – the debts of the company Dubai World.
In 2010, Dubai has to pay the $13 billion debt, and in 2011 – 19.5 billion, RIA Novosti reports.
